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Old 20.08.2019, 01:00
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Canton Zurich incorrect federal tax rate for 2017?

Hi does anyone know if the canton tax office in Zürich had an incorrect tax rate for federal tax for 2017?

My accountant told me recently that my tax return for 2017 (which was submitted around mid October 2018) had an incorrect tax rate and from what I can see I have to pay more:

"But, as said in my previous email, the tax return software 2017 (provided by canton tax office Zürich) did show a wrong rate for federal tax. Initially, we told you federal tax would be CHF 6'290.05 Now it is CHF 7'983.55. Because of this the overall additional amount approx. will be CHF 5'250. I am sorry for this. Unfortunately, that mistake was in most Zürich tax calculations 2017. As it is the official software, we did trust it is correct."


Did this happen to anyone else?
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Old 20.08.2019, 11:27
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Re: Canton Zurich incorrect federal tax rate for 2017?

From the Private Tax FAQ

Quote:
The tax calculation does not match the tax calculation?

The calculation of taxes is quite accurate, if income, deductions and assets are correctly stated, but not official,. The "last word" concerning tax calculation is the tax office and not the Private Tax program.
https://www.steueramt.zh.ch/internet...ivate_tax.html
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Old 24.08.2019, 18:36
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Re: Canton Zurich incorrect federal tax rate for 2017?

I just received the calculations for 2017 .... and it's the same ... they've calculated that I have to pay 1018 CHF extra federal tax, even though my employer deducts the right amount from my salary directly.

What happened in your case?
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Old 24.08.2019, 22:56
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Re: Canton Zurich incorrect federal tax rate for 2017?

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even though my employer deducts the right amount from my salary directly.
right? what is right amount? how does your employer know what your tax return, which will include all your worldly assets, will be when it is you who has to make the tax return?

it seems you are on a B permit and are subject to tax at source (Quellensteuer). in this case the Zurich Tax office instructs your employer to deduct the cantonal mean for income tax (communal,cantonal, federal) from your salary. this is the same for all B permit holders. the rate depends on your personal circumstances (family) and the actual commune you live in, but the rates are all published and known on the web.

If you do not make a tax return this is the end of it. You paid your taxes.

If on the other hand you do make a tax return then the amount deducted from your salary is a provisional amount that is adjusted and taken into account when you make your tax return and depending on what is declared in the return you may have 'provisionally' under or overpaid. if you overpaid you would have received a rebate. if you underpaid you need to pay more as appears to be in the case you described.
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Old 25.08.2019, 11:18
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Re: Canton Zurich incorrect federal tax rate for 2017?

There are usually 2 tax bills. One is the estimated tax for the year based previous year's tax. Then the next bill is based on the actual tax declaration for the year. Most likely in the OP's case the estimated tax was too low, in which case the end result was a larger then normal bill. It can also happen that the estimated tax is too high, in which case on gets a refund.
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Old 25.08.2019, 13:09
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Re: Canton Zurich incorrect federal tax rate for 2017?

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the rate depends on your personal circumstances (family) and the actual commune you live in
The town you live in does not matter for tax at source.

Tom
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Old 03.09.2019, 21:24
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Re: Canton Zurich incorrect federal tax rate for 2017?

Thx for the explanation.

In my case, I would say that everything was predictable. Nothing changed, nor I have received extra salary. I would expect that the tax ratio that the Commune has given to my employer should be accurate.

I started doubting in the correctness of the tax form I've filled in.
I will try to find a tax advisory, just to double check if I've filled everything correctly.

But one thing is for sure ... if you don't have big expenses to declare ... don't bother filling in the tax return form


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right? what is right amount? how does your employer know what your tax return, which will include all your worldly assets, will be when it is you who has to make the tax return?

it seems you are on a B permit and are subject to tax at source (Quellensteuer). in this case the Zurich Tax office instructs your employer to deduct the cantonal mean for income tax (communal,cantonal, federal) from your salary. this is the same for all B permit holders. the rate depends on your personal circumstances (family) and the actual commune you live in, but the rates are all published and known on the web.

If you do not make a tax return this is the end of it. You paid your taxes.

If on the other hand you do make a tax return then the amount deducted from your salary is a provisional amount that is adjusted and taken into account when you make your tax return and depending on what is declared in the return you may have 'provisionally' under or overpaid. if you overpaid you would have received a rebate. if you underpaid you need to pay more as appears to be in the case you described.
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Old 03.09.2019, 21:26
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Re: Canton Zurich incorrect federal tax rate for 2017?

From what I understood, it does matter.
The total tax is a sum of Federal, Cantonal, Communal taxes.
Moreover, it's the local commune who provides the tax rates to my employer.

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The town you live in does not matter for tax at source.

Tom
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Old 03.09.2019, 21:34
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Re: Canton Zurich incorrect federal tax rate for 2017?

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From what I understood, it does matter.
Only if you pay normal taxes, NOT tax at source.

If your employer deducts taxes, you are taxed at source.

Tom
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Old 04.09.2019, 09:30
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Re: Canton Zurich incorrect federal tax rate for 2017?

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Only if you pay normal taxes, NOT tax at source.

If your employer deducts taxes, you are taxed at source.

Tom
Thanks for the clarification, Tom!
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Old 04.09.2019, 10:56
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Re: Canton Zurich incorrect federal tax rate for 2017?

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But one thing is for sure ... if you don't have big expenses to declare ... don't bother filling in the tax return form
If you are asked to fill them in, you don't have a choice! For example if you earn more that >120,000 per annum or own property (CH or elsewhere) or have largish investments then that also counts.

when you registered for the first time in CH you had to fill in a form declaring (roughly, not the penny level) what world assets you had. this info gets distributed to many offices including the tax office of your canton. this would be the basis for triggering a tax return requirement combined with your salary. but if you feel this is not justified you can ask them to re-evaluate in which case they can ask you to fill a more detailed assets form (pennies + proof!) and then decide on that.


In any case if you are on a C permit or get involved with a Swiss citizen or earn more than 120kCHF you have to make a return.
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Old 04.09.2019, 11:00
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Re: Canton Zurich incorrect federal tax rate for 2017?

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when you registered for the first time in CH you had to fill in a form declaring (roughly, not the penny level) what world assets you had.
When was this introduced? I never got this.
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Old 05.09.2019, 09:50
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Re: Canton Zurich incorrect federal tax rate for 2017?

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When was this introduced? I never got this.
It may not have been an explicit form for assets but it was certainly questions on the general 'arrival interview' at the commune.

15 years ago when I arrived and I went to the Commune office the first time (< 7 days from arrival) I had to fill out a whole load of details. I think it was blue! Names addresses, passports, birth certs, religion! etc. I remember the assets questions and asked about this and i was told that this and the religion question are for the tax office.
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Old 05.09.2019, 09:58
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Re: Canton Zurich incorrect federal tax rate for 2017?

It could well depend on the canton. Religion question is standard as they need to know whether to tax you on it or not, so quite important to indicate 'no religion', otherwise you'll get a bill just for that!
I've never heard of the assets question, surely that's private (at least nothing to do with that office)! The question of assets will naturally come up when tax return forms arrive though. It's at that point that you can reveal your assets in detail.
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